Financial Model Notes

Progress Software [PRGS]

Progress Software [PRGS] — Financial Model Notes

Sources and precedence

Income statement, balance sheet, cash flow: Alpha Vantage normalised statements, verified line-by-line against EDGAR companyfacts for FY2020–FY2025 and against the Q2 FY2026 10-Q.
Opex bridge lines: taken from the 10-K, not from AV, per DATA_DEFECTS.md.
D&A: taken from the cash-flow statement. AV's ebitda and ebit fields were not used at all.
Operating margin: computed as operatingIncome / totalRevenue. OVERVIEW.OperatingMarginTTM was not used.

Fields deliberately NOT used

AV field	Reason
`ebit`	not operating income (measured 3.11x on NOW)
`ebitda`	wrong on 12 of 20 names tested
`sellingGeneralAndAdministrative`	verified defective on PRGS — see below
`OVERVIEW.OperatingMarginTTM`	single quarter mislabelled TTM, carries the `ebit` defect
`OVERVIEW.MarketCapitalization`	stale price; $1,751.663m vs $1,640.9m verified (+6.8%)
`cashAndShortTermInvestments`	composite; cash and investments read separately (PRGS holds no short-term investments as of 31 May 2026)

The SG&A test, run as instructed, result reported either way

	FY2025
AV `sellingGeneralAndAdministrative`	$108,215,000
Filed `GeneralAndAdministrativeExpense`	$108,215,000 — byte-identical
Filed `SellingAndMarketingExpense`	$211,013,000 — absent from AV
True SG&A	$319,228,000
AV error	2.95x light · 21.58pp of revenue

Result: DEFECTIVE on PRGS. The field is G&A only. This is a third confirmed instance of the "G&A only" pattern alongside NOW/INTU/ORCL, against the clean INSM/NVDA cases — the field remains name-dependent and must be tested per name.

Same test, opposite result, on the same name: AV's researchAndDevelopment = $192,265,000 matches the filed "Product development" line exactly, and AV's commonStockSharesOutstanding = 41,012,900 against a filed 41,012,942 (0.0001%). Both CLEAN. The diluted-weighted-average defect measured on WDC/COHR/STX does not fire here.

Reconciliations that tie

Check	Result
Gross profit + cost of revenue = total revenue (FY2025)	$790.250m + $187.581m = $977.831m ✓
Gross profit − total opex = operating income	$790.250m − $636.960m = $153.290m ✓
Opex bridge sums to filed `OperatingExpenses`	192.265 + 211.013 + 108.215 + 104.266 + 13.109 + 8.092 = $636.960m ✓
Sum of 4 AV quarters = screen TTM revenue	$1,003,725k = $1,003,725k ✓
Debt carrying − cash = screen net cash	$1,292,147k − $102,978k = $1,189,169k ✓

TTM construction

Rolling four quarters to 31 May 2026: 2026-05-31, 2026-02-28, 2025-11-30, 2025-08-31. Q4 (the Sep–Nov quarter) is included — the fiscal-Q4-skip defect does not apply, because AV's normalised quarterly series carries it and it was cross-checked against FY2025 − (Q1+Q2+Q3): $977.831m − ($238.015 + $237.355 + $249.795) = $252.666m, which equals the AV Q4 figure exactly.

Splits

SPLITS queried explicitly. Result: 1.5:1 on 2011-01-31 and 2:1 on 2000-01-24. Nil since 2011. No split-basis mismatch is possible in the window used.

Modelling conventions

Tax rate 21% for NOPAT. WACC 9.5% (levered; 42% net debt/EV at a 5.92% marginal borrowing rate).
Terminal g = 3.0%.
EV is lease-EXCLUSIVE. Operating lease liabilities $34.611m = 1.2% of EV; lease-inclusive EV is $2,864.7m. Stated explicitly per DATA_DEFECTS.md.
Share count is basic outstanding from the 10-Q cover, not diluted. PRGS's 2030 converts settle principal in cash, so if-converted dilution is limited to the in-the-money excess and was nil in the period. Capped calls expired unexercised April 2026.

Generated from each name's analysis.json. Figures are research output, not investment advice. Gaps are shown as “—” rather than filled: a missing input is recorded as indeterminate, never estimated.